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Ever know anyone who will explicitly say he/she doesn't think innovation is important? Status Quophobes are Innovators - they see the half empty glass as half full, waiting to be filled up! Status Quophobes are Innovators - they see the half empty glass as half full, waiting to be filled up! Do these sound familiar?
In The Essential Advantage : How to Win with a Capabilities-Driven Strategy , Booz & Company’s Paul Leinwand and Cesare Mainardi maintain that success in any market accrues to firms with a coherence premium – a tight match between their strategic direction and the capabilities that make them unique. Let’s go after it.”
Companies that demonstrate strategic coherence — think Wal-Mart and Coca-Cola — earn a market premium in terms of higher earnings and greater shareholder value. Start from the opposite direction: Find an attractive market that values what you do best! There's no doubt about it; numbers don't lie.
For the former, we examined the presence and market penetration of disruptor companies; we also considered incumbents’ financial performance. For the latter, we measured incumbents’ operational efficiency, commitment to innovation, and defenses against attack.
Some find evidence of a clear improvement of total factor productivity since market-oriented reforms began in 1979, estimating that the increase in TFP contributed about 40% to GDP growth, roughly the same as that contributed by fixedasset investment. There was also a slowdown in TFP after the mid 1990s.
For over an hour, the panel discussed all of the innovative projects they’d worked on — spanning projects from Google Fiber to ad bidding technologies at Facebook. Yes, all of the panelists were speaking broadly on innovative projects. But innovation is a word that means a wide variety of things to a wide variety of people.
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